Elegant Marbles and Grani Industries Ltd Management Discussions

(For the Financial Year Ended March 31,2025)

The Management at Elegant Marbles and Grani Industries Limited is pleased to present the Management Discussion and Analysis Report for the financial year ended March 31, 2025. This report provides an overview of the Companys business environment, industry structure, economic developments, opportunities, challenges, and future outlook. It forms an integral part of our corporate governance disclosures.

A. Economic Overview:

- Global Economy

The global economy in FY 2024-25 continued to navigate through uncertain terrain marked by ongoing geopolitical conflicts, inflationary trends, and regional economic disruptions. While headline inflation showed signs of cooling, core inflation remained persistent, influencing monetary policy decisions worldwide. Despite these headwinds, the overall global economic outlook indicates a gradual recovery, with cautious optimism for improved growth in 2025.

- Indian Economy and Outlook

The Indian economy remained resilient amidst global challenges, supported by robust domestic consumption, continued infrastructure investments, and proactive policy measures. Although growth was marginally below earlier forecasts due to external disruptions, India maintained a commendable trajectory, reaffirming its position as one of the fastest-growing major economies. Market analysts expect this momentum to build further in the coming years, aided by strong fundamentals and demographic advantages.

B. Industry Structure and Development:

The marble and granite industry remains closely tied to the construction and real estate sectors. The real estate sector in India sustained a steady recovery in 2024-25, driven by urban demand and infrastructure spending. Despite moderate growth compared to initial expectations?owing to macroeconomic uncertainties and supply chain fluctuations?the long-term outlook remains robust. The trend of aesthetic interiors and premium construction materials continues to bolster demand for quality marble and granite products.

- Business Overview:

Elegant Marbles and Grani Industries Limited continues to solidify its reputation as a trusted manufacturer and processor of high-quality natural stones. With more than three decades of experience, the Company has built a legacy rooted in innovation, quality, and customer satisfaction. Our manufacturing facility at Abu Road, Rajasthan, remains one of the most technologically advanced in the sector.

While FY 2024-25 remained stable in terms of financial and operational performance?mirroring the trends of the previous year?the Company witnessed encouraging signs of future growth. Investments in digital platforms, marketing, and product diversification have laid the groundwork for enhanced performance in upcoming years.

Despite falling slightly short of anticipated growth targets due to broader macroeconomic and geopolitical challenges, the management remains optimistic. The foundations built during this period are expected to catalyze strong and sustainable growth in the near future.

Financial and Operational Performance

The Company maintained a stable financial position in FY 2024-25, with performance metrics largely in line with the previous year. While external factors affected short-term growth, internal efficiencies and strategic positioning have ensured operational resilience. Detailed financial data is provided in the accompanying financial statements section of the Annual Report.

Opportunities and Threats

The future outlook for the marble and granite industry remains promising. Government-led infrastructure development, increased disposable incomes, and shifting consumer preferences toward premium housing continue to present significant opportunities. Additionally, the Companys expanding international presence opens doors in emerging global markets.

However, challenges persist in the form of increasing competition, price pressure from artificial stone alternatives, and rising input costs. The Company is actively enhancing its product mix, supply chain resilience, and customer engagement strategies to address these threats.

Risk Management

Risks are inherent in any business, and the Company has instituted a comprehensive Risk Management Policy to proactively identify, assess, and

mitigate such risks. Regular reviews are conducted to ensure preparedness against potential disruptions. The Risk Management Committee works closely with operational leadership to maintain business continuity and compliance.

Internal Control Systems and Adequacy

Elegant Marbles has a robust internal control framework designed to ensure operational efficiency, financial accuracy, and legal compliance. The internal audit process, conducted by an independent firm, provides regular feedback to management and the Audit Committee for continuous improvement.

Human Resources

Employees remain central to the Companys continued success. As of March 31, 2025, the Company has a dedicated workforce committed to operational excellence and customer satisfaction. Emphasis on training, well-being, and ethical values ensures a motivated and capable human resource base.

Cautionary Statement

Certain statements in this report are forward-looking in nature. These are based on the current expectations, assumptions, and projections of the Company and are subject to uncertainties and risks. Actual results may vary materially due to changes in economic conditions, regulatory policies, and unforeseen events.

	For and on behalf of the Board of Directors ELEGANT MARBLES AND GRANI INDUSTRIES LIMITED
Date: May 30, 2025 Place: Mumbai	Rajesh Agrawal Chairman and Managing Director DIN:00017931